PhonePe’s UPI Solution for Feature Phones

PhonePe to Launch UPI Solution for Feature Phones

PhonePe has announced plans to launch a Unified Payments Interface (UPI) solution for new feature phone users in India. It will leverage NPCI’s UPI 123PAY technology. Additionally, it will utilize Gupshup’s GSPay tech stack.

Key Features:

• Person-to-Person Transfers: Support for P2P transfers, enabling users to send and receive money seamlessly.
• Offline QR Code Payments: Offline QR code-based payments, allowing users to make transactions without internet connectivity.
• Receiving Money: Users can receive money from other UPI users to their mobile numbers or self-QR codes.

Technology and Partnerships

PhonePe has acquired the intellectual property rights of Gupshup’s proprietary GSPay technology stack, customizing it to build its UPI solution. GSPay is built in accordance with NPCI’s UPI 123Pay service, launched in 2022.

Market Opportunity

India had approximately 240 million feature phone users in 2024. An additional 150 million feature phone shipments are expected in the next five years. PhonePe aims to bridge the gap in digital financial services for this underserved segment.

Launch Timeline

While the launch timeline isn’t specified, PhonePe expects the UPI service to be available within a few quarters. The solution aims to create full payment interoperability between feature phones and smartphone users in India